Silicon Valley Doesn't Just Help the Surveillance State—It Built It

More than a decade ago, CIA Director Michael Hayden began enlisting the private sector to build the NSA's data ops.
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Some of America's biggest social media and tech companies have been denying in recent days that they were aware of the National Security Agency's recently-exposed "PRISM" and telephone monitoring programs. But these denials obscure a larger truth: The government's massive data collection and surveillance system was largely built not by professional spies or Washington bureaucrats but by Silicon Valley and private defense contractors.

So says Michael V. Hayden, the retired Air Force general who as director of the NSA from 1999 to 2006 was a primary mover behind the agency's rebirth from Cold War dinosaur into a post-9/11 terror-detection leviathan with sometimes frightening technical and legal powers.

After many false starts, that transformation was achieved largely by drafting private-sector companies that had far more technical know-how than did the NSA, and contracting with them to set up and administer the technical aspects of these surveillance programs, Hayden told National Journal in an interview Sunday.

"There isn't a phone or computer at Fort Meade [NSA headquarters] that the government owns" today, he says.

That doesn't quite square with the popular image of the NSA as a shadowy confection of Big Brother and Big Government. Nor with the description of PRISM as merely "an internal government computer system," as Director of National Intelligence James Clapper called it over the weekend.

Among these contributing companies reportedly is Palantir Technologies, the Palo Alto, Calif., company that several news outlets have identified as a close associate of the NSA's. Another is Eagle Alliance, a joint venture of Computer Sciences Corp. and Northrup Grumman that runs the NSA's IT program and describes itself on its website as "the Intelligence Community's premier Information Technology Managed Services provider." ("We made them part of the team," says Hayden.) Another is Booz Allen Hamilton, the international consultancy for which the reported whistleblower in the NSA stories, contractor Edward Snowden, began working three months ago. In 2002, Booz Allen Hamilton won a $63 million contract for an early and controversial version of the current data-mining program, called Total Information Awareness, which was later cancelled after congressional Democrats raised questions about invasion of privacy in the early 2000s. The firm's current vice-chairman, Mike McConnell, was DNI in the George W. Bush administration and, before that, director of the NSA. Clapper is also a former Booz Allen executive.

In its outreach to private industry, the NSA occasionally overreached. The most notorious example was the $1.2 billion "Trailblazer" program developed in the early-to-mid-2000s by SAIC and other companies, which led to the notorious attempted prosecution of another whistleblower, an NSA career employee, who sought to expose the program as a wasteful failure. "One of the things we tried to do with Trailblazer was to hire out a solution to our problems," Hayden says. "It was kind of a moonshot."

Afterwards, Hayden said, "we began to do this in increments," still employing private-sector firms. "It's the companies responding to your requests... You look for a Palantir, and you make them part of our team."

It's questionable whether any of the nine major U.S. Internet companies named in the PRISM stories were, like some of these contractors, also willing parts of the NSA "team." For the tech industry, especially the social-media companies, the controversy over the extent of the NSA's domestic data gathering has become an acute embarrassment. The NSA is said to have tapped into servers of the nine companies, but the heads of two of the biggest, Facebook founder Mark Zuckerberg and Google co-founder Larry Page, issued near-identical statements late last week saying neither of them had ever heard "of a program called PRISM" until the press reports.

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Michael Hirsh is chief correspondent for National Journal.

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